SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply financial knowledge and skill to compile a finance agreement 
SAQA US ID UNIT STANDARD TITLE
120027  Apply financial knowledge and skill to compile a finance agreement 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard intended for learners who work as finance and insurance managers in the motor retail industry at dealership level, in telesales, and other retail financing operations including travel insurance and car hire.

The qualifying learner is capable of:
  • Conducting a credit assessment.
  • Explaining different funding options.
  • Analysing the terms and conditions of a finance agreement.
  • Recording instructions for a specific customer. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Learners should be competent in Communication and Mathematical Literacy at Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Funding options include, but are not limited to, lease, operating lease, lease outside the Act, installment sales, rental agreements and suspense of sale. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Conduct a credit assessment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A customer's personal details are obtained, verified and interpreted to determine contractual capacity. 

    ASSESSMENT CRITERION 2 
    Affordability is analysed in relation to income. 

    ASSESSMENT CRITERION 3 
    The credit worthiness of a customer is analysed based on the customer's personal details. 

    ASSESSMENT CRITERION 4 
    The consequences of non disclosure are explained to the customer. 

    ASSESSMENT CRITERION 5 
    The concept of equity is explained with reference to the financial risk in the financed goods. 

    ASSESSMENT CRITERION 6 
    The intended use of the goods is compared to the profile of the customer to determine suitability in terms of FICA Know your client requirements. 

    SPECIFIC OUTCOME 2 
    Explain different funding options. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Different forms of funding available from financial institutions are identified and compared in terms of tax implications, buyer preference and termination options. 

    ASSESSMENT CRITERION 2 
    The needs of a specific customer are matched to a funding option in order to propose a financial solution. 

    SPECIFIC OUTCOME 3 
    Analyse the terms and conditions of a finance agreement. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The terms and conditions of a specific credit agreement are analysed and explained to three different customers. 

    ASSESSMENT CRITERION 2 
    Special clauses in a specific credit agreement are analysed and explained to a customer. 

    ASSESSMENT CRITERION 3 
    Terms and conditions that fall outside current consumer credit legislation are explained and an indication is given of the implications and consequences of such a contract for the customer. 

    ASSESSMENT CRITERION 4 
    The difference between the repro rate and the prime rate is explained with reference to the effect on credit. 

    SPECIFIC OUTCOME 4 
    Record instructions for a specific customer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The documents required to structure a financial agreement are collated and checked for compliance. 

    ASSESSMENT CRITERION 2 
    A proposed transaction is recorded according to the customer's instructions for submission to a financial institution. 

    ASSESSMENT CRITERION 3 
    The financial institution's decision and conditions are communicated to the customer. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in conducting a credit assessment. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in interpreting terms and conditions and communicating a decision to a customer. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by interpreting personal details to determine contractual capacity. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learner is able to make a responsible decision in structuring a financial agreement for a specific customer. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  65051   Further Education and Training Certificate: Arts and Culture Development Support  Level 4  NQF Level 04  Reregistered  2023-06-30  CATHSSETA 
    Elective  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.